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Amendment of articles of association

Although the Shareholders Agreement typically has all the existing shareholders, the company and the investors as the parties to it, under the Companies Act, amendment of articles of association (AOA) is critical for the SHA to be binding on the company. Therefore, one of the conditions precedent to any investment transaction in India is preparation of a draft of an agreed version of the articles. This draft is adopted by passing necessary board and shareholders resolutions at the time of completion / closing. Necessary filings pursuant to the change in articles and the issue of shares post the investment are made to the Ministry of Corporate Affairs as conditions subsequent to the transaction. 

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